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Question 5 2 Points Which of the following is incorrect? A As the U.S. price level rises, U.S. goods become relatively more expensive so that U.S, exports fall and U.S. imports rise. B When the price level increases, real balances increase and businesses and households find themselves wealthier and therefore increase their spending. C Given aggregate demand, an increase in aggregate supply increases real output and, assuming downward-flexible prices, reduces the price level. D As the price level falls, the demand for money declines, the interest rate declines, and interest-rate-sensitive spending increases